Comprehensive Guide to High-Level Business Roles

1. Organizations Typical Business >$100M Sales CEO, Business Leader Marketing Sales Engineering Research Manufacturing Operations HR Legal Finance Info Technology Service Operations

2. Roles Typical Business • CEO – Chief Executive Officer • Sets Strategic Direction • Formulates and Drives overall Operating Plan • Allocates Funding to Supporting Functions • Sets/Approves Supporting Function Annual Goals • Company Image and Morale • Meets Strategic Commitments: OM, CM, Cash, Net Income, etc • Ultimate Responsibility for Quality

3. Roles Typical Business • Marketing & Sales • Assess Customer Needs & Satisfaction • Determine Market Size, Demographics • Transform Customer Needs into High Level Product Definitions • Communicate Product Definitions to Eng • Drive Promotion and Advertising • Assess Competitive Product Features • Set Sales Prices • Determine Suitable Distribution with Mfg • Predict/Communicate Sales Volume & $ for each Product on Annual Basis

4. Roles Typical Business • Engineering • Transform High Level Product Definition into Quantifiable and Verifiable System Requirements • Estimate Resources Required for Proposed Product Development • Provide Technology and Design Solutions to System Requirements • Develop System Architecture, Requirement Flowdown, and Detailed Design Solutions • Integrate and Verify Block and System Level Requirements • Provide Mfg with all documentation to produce the product • Provide/Integrate Competitive New Technology

5. Roles Typical Business • Manufacturing & Operations • Purchase & Procurement of Materials • MRP (Material-Resource Planning) • Build, Produce, Distribute the Products • Develop Automated and Manual Assembly • Develop Automated and Manual Processes • Drive for Lower Cycle Time, Inventory, Defects, Rework, Variable Costs, Safety • Drive Promotion and Advertising • Justify Equipment Expenditures, ROI • Maintain Product Mfg Records • Shipping and Receiving

6. Roles Typical Business • Info Technology (Supporting Function) • Provide Computer Automation of Manual Functions including Order Entry, Purchase Orders, Shop Orders, Inventory, Payments, and Shipping Orders • Support eBusiness Transactions • Provide Basic Computer Platforms to Departments including HW, OS, Email, Internet, Word Processing, Spreadsheet, Charting, E-CAD, etc • Provide Networking, File Storage and Server Infrastructures

7. Roles Typical Business • Finance (Supporting Function) • Manage Accounts Payable • Manage Accounts Receivable • Provide Periodic Accounting Summary of Base Cost, Var Cost, OM, CM, Net Inc & Cash • Provide Operating Plan Assessment • Allocate Depreciation • Provide Tax Justification and Payment • Drive Controllership, Identify and Reduce Unnecessary Costs • Manage Company Payroll

8. Roles Typical Business • Human Resources & Legal (Supporting Functions) • Find Qualified New Hire Candidates • Drive Periodic Performance Assessments and Salary Actions • Drive Compliant & Legal Operations • Formulate and Communicate Company Policies including vacation, work rules, sick leave, disability, bereavement, internal job posting, seniority, use of company assets, job elimination • Provide Employee Complaint & Appeal Systems • Manage Intellectual Property Usage/Ownership • Manage Company Legal Actions

9. Typical Annual Business Planning Processes Month 1 Month 5 Month 6-7 Month 9-12 Month1 Tech Platform Products LT Financial ST Financial Tech Technology Assessment And Planning 3-5 Year Platform Plan 3-5 Year Product Plan 3-5 Year Financial Estimates 1 Year (Next Year’s) Operating Plan Technology Emphasis Business Emphasis • Technology Capability Over Time • Competitive Differentiation • Technology Ownership • Common Hardware andSoftware Platforms • Platform Owners & Roadmaps • Market-Backed Multi Year Roadmap • Competitive Differentiation • Product Plan Linked to … • Technology Plan Linked to … • Resource Plan • Financial Plan Business Planning Process Culminates in 1 Year Operating Plan

10. $ Base Costs $ • Cost Associated with developing a product plus all costs not associated with an individual production unit • Product Design Engineering Compensation and Benefits (Salary) • Eng and Mfg Capitol Equipment Depreciation • Office supplies, tools, computer rental, network, etc • Travel and Living Expenses • RTS – Ready-to-Serve typically includes Eng Management, Administration and other support staff • Base costs are those that stay the same regardless of production volume • $ Variable Costs $ • Cost Associated with an individual production unit • Product material costs • Product labor and scrap costs • Product Shipping, Distribution and Installation costs • Product Warranty costs • Cost of Selling Product – Commisions • Variable Costs scale with production volume

11. Basic Business Financial Terms Sales to Net Income Walk Cash Flow and Net Cash is also Very Important Total Sales $ Revenue Variable Costs $ - COGS - DSC Contribution Margin $ (CM) Base Costs $ - C&B - RTS Operating Margin $ (OM) Financial Costs $ & Taxes Net Inc $ COGS = Cost of Goods Sold (Inventory Value of Goods including material, production costs, scrap) DSC = Direct Selling Costs (Installation, Warranty, Sales Commissions) C&B = Compensation & Benefits (Salaries of Engineering & New Product Development Staff) RTS = Readiness To Serve (Support and Infrastructure, Management, Depreciation, Facilities) Financial Costs = Other Costs and Income (Royalties + Investments +/- Interest Expense/Income)

12. Basic Business Case ForA New Product Program Inputs • Estimated Average Product Selling Price (ASP$): • Estimated Annual Product Sales Volume in Units: • Estimated Per Unit Cost of all Parts & Materials @ above volume: • Estimated Per Unit Cost of all Assembly, Test & Mfg @ above volume: • Estimated Total Development Cost in $ incl Labor & Material: (In this class we will assume 1 Hr of Eng = ~$150) • Calculate the Annual Sales Revenue $ = ASP$ * Annual Volume • Calculate the Annual Var Costs $ = (Unit Material $ + Mfg $) * Annual Volume • Calculate the Per Unit CM$ = ASP$ – (Unit Material $ + Mfg $) • Calculate the CM% = Per Unit CM$/ASP$ • Calculate the Annual CM$ = Unit CM $ * Volume = Annual Sales $ - Annual Var Costs $ • Calculate the ROI (Return on Investment) Time in Years = Est Dev Cost $/Annual CM$ Outputs

13. Industry Compliance Control Systems Management Design Controls Production & Process Controls Corrective & Preventive Actions Equipment & Facility Controls MaterialControls Records, Documents, & Change Controls Controls

14. Terms and Definitions • Design Inputs • Requirements, Constraints and other information which is needed to formulate a set of design outputs for a given product. • Design Inputs must include customer (user) level as well as product/system level. • Design Outputs • All drawings, documents and other information necessary to describe the constituent parts, assembly, manufacturing process, service and disposal processes for a product. • Design outputs from one team often become the design inputs to another team. All Design Inputs/Outputs Must Be Reviewed in Many Industries… …. ie Aerospace, Transportation, Medical, etc

15. Terms and Definitions • Reviews • Peer review of design inputs and design outputs are a mandatory part of many industry product development processes. • Reviews must include objective evidence of attendees, documented issue list with dispensation actions, signatures and dates. • Reviews must include appropriate stake holders (management, customers, other design teams) plus at least 1 unbiased, knowledgeable external reviewer

16. Terms and Definitions • Verification • Design analysis, simulation or prototype testing which provides objective evidence that a design meets all of its block or product level requirements. • Verification is used to prove that a design meets all of its specifications. • Is performed at component, block and product levels • Validation • Product field, clinical or customer trial which provides objective evidence that a product meets its customer (user) requirements. • Intended use is an important part of the product labeling. • Is only performed at the product level

17. Stadtmiller 6 Project Steps • “Electronic Project Management & Design” • Research and Gather Information (Chapter 5, Lab 1) • Market and Competitive Assessments • Key Component and Technical Feasibility Information • Define the Product, Develop Design Specs (Chapter 6, Labs 1,2 & 4) • Standard Requirements – Common; Performance Requirements – Unique • Block Diagram and Assignments • Develop a Program Plan (Chapter 7, Lab 3) • Specific to Design Blocks and Product Needs • Common tasks based on Check List • Execution, Detailed Design Phase (Chapters 8-11, Labs 5-8, 10) • Detailed Design • Packaging and Component Selection, Mfg Process Design • Prototype Design and Construction • Design Verification (Chapter 12, Labs 8-9) • Mfg Test and Calibration, Serviceability, Obsolescence • Environmental Stress Screening, Design for Reliability, Design for Manufacturability • Conclusion, Institutionalize Design Knowledge and Improvements

18. 0 2A 3A 4 7 1 2 3 5 8 6 9 Typical Industry Product Development Process • Milestones are used to control and monitor product development execution • A program cannot proceed to the next milestone tasks until Management has approved the current milestone • Each milestone requires specific tasks & documentation, checklists and review • Some milestones may be skipped if the programs are smaller Program Timeline 0 Business Case Confirmed 1 System Design, Funding Committed 2A External Evaluation Authorized 2 Detail Design Complete, Xfer to Mfg 3A Sales Announcement • Pilot Production Authorized • Full Production Authorized • Customer Satisfaction Confirmed 6 Authorization to Stop Sales and Production 7 Communicate End-of-Life to Customers 8 Decisions to Scrap Spare Parts 9 End of Product Life and Data Management

19. Step 1-2: Team & Project Identification Project Suggestions Project Brainstorming Productization Aspects Team Formation Resource Assessment Logistics and Roles Review Initial Product Level Requirements Performance Requirement Formulation Standard Requirement Formulation Define Customer, Country, Demographics Outputs P1 (Steps 1-2) Projects Considered Selection Rationale Basic Product/Project Description Key Requirements Architectural Block Diagram Review

20. Step 2-3: System Design, Program Plan Inputs Define Product Source Power Requirements Define Product Elec Interfaces Define Product Mech Interfaces Define Safety Stds Define EMC Stds Basic Product/Project Description Key Requirements Architectural Block Diagram Define All Operating Modes Define Initial Assembly Levels Define PCB Count, Block to Board Allocations Block Electrical Interface Reqs Analog: voltage range, impedance, freq, etc Digital: Vih,Vil, Iih, Iil, Voh, Vol, Ioh, Iol, etc Product Level Requirement Allocation and Association to Blocks Requirement Flowdown to Blocks Block Interface Requirements Outputs: P2 (Step 2-3) Prod Level Std Reqs Defined Prod Level Perf Reqs Defined Block Diagram Defined Block Interfaces Defined System Allocation and Association of Prod Level Reqs Project Roles and Block Assignments Defined Project Plan, Tasks Defined & Estimated Scope & Resources Reconciled Block Task Estimates Product Level Estimates Resource Allocations Overall Project Plan Scope Add/Subtract Review

21. Step 4: Detailed Design Inputs Define Block Electrical Perf Reqs PS Voltage Range PS Current Range Analog Perf Gain, SNR, Freq Resp, Xfer Func etc Digital Perf Ops/Sec, Clock Freq Range, State Diagram Define Block Mechanical Reqs Define Connector Types Define Mech Mounting for PCB’s Define Mech Mounting for any Non PCB components Refine PCB Sizes Block Diagram Block Interfaces System Allocation & Association of Prod Level Block Tasks Defined & Estimated Block Scope & Resources Reconciled Final X-Check Block Electrical Interface Reqs Analog: voltage range, impedance, freq, etc Digital: Vih,Vil, Iih, Iil, Voh, Vol, Ioh, Iol, etc Signoff with Interfacing Teammates Execute Detailed Circuit Design Research Circuit Solutions Review Review Proposed Solution with Team Outputs: P3 Schematic Diagram Initial Parts List Design Equation and Theory of Operation: Nom Values of R, L, C Analog DFM Analysis: Tol%, Power, Comp Select, Digital DFM Analysis: DC Drive, Timing Firmware: State Diagram, VHDL, uCode Review Analog DFM and worst case analysis Digital DFM and worst case analysis

22. Step 5-6: DFM, DFR, Verification, Conclusion Inputs Define Block Verification Plan Procure Initial Prototype Components Breadboard Initial Prototype Verify functional performances in Lab Document Block Verification Schematic Diagram Initial Parts List Design Equation and Theory of Operation: Nom Values of R, L, C Analog DFM Analysis: Tol%, Power, Comp Select, Digital DFM Analysis: DC Drive, Timing Firmware: State Diagram, VHDL, uCode Procure Final Prototype Components Define PCB Layout for Final Prototype Define Production Parts List for Block Refine Prototype Parts List for Block Integrate Design Block Proto/Production Parts Lists Execute Overall PCB Layouts Construct Prototype PCBoards Integrate Prototype Define Prototype Verification & Validation Plan Execute Verif & Valid Conduct Reli Analysis Conduct Sustaining Analysis Develop User Manual Develop Overall Mfg Process Design Repair Strategy Review Outputs P4, Final Deliverables: Functional Prototype Verified System Requirements MS Word Design Report MS Powerpoint Project Presentation Objective Evidence of Robust Design Solution and Control Drawing Package for Mfg Review